The Win-Win Development Between Energy Conservation And Emission Reduction And China’s Green Economy

With the severe resourceful and environmental situation, Chinese government has adopted a series of environmental regulation measures. The issue that whether energy conservation and emission reduction can fulfill the win-win development between environment and green economy has become a meaningful Chinese economy problem. Based on the dual decompositions of green Luenberger productivity indicator, this paper firstly applies the biennial weight modified Russell model(BWMRM), biennial bounded adjusted model(BBAM), and biennial range adjusted model(BRAM) to study the energy conservation and emission reduction performance’s effect and its mechanism on China’s green TFP under the resource and environment constrains and analyze the issue whether energy conservation and emission reduction can drive China to achieve the win-win development between environment and green economy.The major findings are showed as follows, China’s green productivity has realized improvement from 1999 to 2013, and technical progress is the critical driver while efficiency deterioration appears the weak negative effect. From factor decomposition analysis, the energy conservation and emission reduction performance are the critical drivers of green productivity. Moreover, the emission reduction performance is greater than energy conservation performance, and SO2 regulation is more efficient than COD regulation. Energy conservation and emission reduction improve the green productivity by booming the technical progress and then drive DMUs to achieve the win-win situation, which supports the Porter hypothesis. The Three Regions have a trade-off relationship between economy and environment. The East and Central areas achieve the win-win situation by adopting “managerial strategy” and “natural strategy” respectively, and the East’s effect is more remarkable, while the West encounters the “double deterioration” because of the highly-energy-consuming and highly-polluting production model. As learners, Jiangsu, Shandong, Liaoning, Tianjin, Sichuan, and Guizhou have enhanced their energy conservation and emission reduction efficiency obviously, and stop the China’s green efficiency from further deterioration significantly. As innovators, Shanghai, Beijing, Shandong, Jiangsu, and Fujian have promoted technical progress inordinately, and drive China’s green productivity effectively. Moreover, three kinds of patent applications granted, R&D input strength, industrial structure, and other factors have different effect on ECER performance. According to the main findings of this paper, energy conservation and emission reduction can further improve China’s green productivity to promote green economic development by strengthening energy conservation and emission reduction technology and regulation, optimizing the industrial structure, increasing the contribution shares of energy conservation and COD reduction, and adopting regional differentiation strategies.